Tax Deductible Christmas Parties

Employers holding Christmas parties on their business premises, during a working day where food and drink are consumed by current employees are exempt from paying Fringe Benefit Tax with the cost of the party being fully tax deductible.  Employers holding Christmas parties off business premises say at a restaurant will be subject to a $300 cap per employee and a $300 cap per head for associates such as spouses.  Where the employer pays $300 or less per head then no fringe benefits tax arises and the cost of the party is fully tax deductible.  Unfortunately where a client attends there is no tax deduction for that client.